A short history of Kisan Vikas Patra (KVP)
Kisan Vikas Patra (KVP) is a small savings certificate for people who want to put money away for the long term. It is the government's "money double" scheme, sold through post offices across India. The Government of India first introduced it in 1988, withdrew it in 2011 and brought it back in 2014 with some changes. The scheme was popular, but a government committee set up in 2011 warned that Kisan Vikas Patra (KVP) could be misused for things like money laundering.
So when Kisan Vikas Patra was relaunched in 2014, it came with new rules, including mandatory PAN card proof for investments over Rs.50,000 and proof of income source for investments over Rs.10 lakh. Today Aadhaar is needed to open any small savings account, and PAN is needed once the amount crosses Rs.50,000. Its biggest advantage is how easy it is to buy: KVP is sold at every post office in the country and at authorised banks. Any resident Indian can buy a KVP certificate, alone, jointly or in the name of a minor. At the 2014 relaunch the money doubled in 100 months. The rate has changed many times since, and the doubling period changes with it. The scheme is aimed mainly at people in semi-urban and rural areas.
Kisan Vikas Patra (KVP) at a glance
- At the current rate of 7.5% a year (October to December 2026 quarter), money invested in Kisan Vikas Patra (KVP) doubles in 115 months (9 years and 7 months). The doubling period is fixed on the day you invest.
- You buy Kisan Vikas Patra (KVP) at the post office or an authorised bank. The minimum is Rs.1,000, in multiples of Rs.100, with no upper limit.
- You can name a nominee.
- You can move your certificate to another post office.
- You can encash the certificate 2.5 years after the date of issue.
- There is no limit on the number of certificates you can buy.
- Kisan Vikas Patra (KVP) can be pledged as security for a loan.
Who can buy Kisan Vikas Patra (KVP)
- The applicant must be a resident of India.
- An adult can buy in their own name or on behalf of a minor. A minor aged 10 or more can buy in their own name.
- Only individuals can invest. Trusts, HUFs (Hindu Undivided Families) and NRIs can't invest in KVP.
Types of Kisan Vikas Patra (KVP) certificates
Single holder type certificate
Issued to an adult for themselves, to an adult on behalf of a minor, or to a minor aged 10 or more.
Joint ‘A’ type certificate
Issued to up to three adults together. It is paid to all the holders jointly, or to the survivors.
Joint ‘B’ type certificate
Issued to up to three adults together. It is paid to any one of the holders, or to the survivors.